SWOT Analysis of Tesco: A Business Development Essay

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Running head: Assessment 2: Essay
Assessment 2: Essay
SWOT ANALYSIS
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Assessment 2: Essay
The companies can get different effects from the internal and external environment of the
organization. Therefore, the companies need to analyze their environment in a proper way and
this can be helpful for them to develop proper business strategies. In terms of conducting the
study the company Tesco has been selected. The internal analysis of Tesco has been analyzed in
this study.
SWOT analysis is the process of analyse the internal environment of the company. Tesco is the
retailing company that has their business in the internal market. Therefore, in terms of running
their business in the competitive market the organization needs to develop proper plans. In this
case SWOT analysis can be helpful for Tesco which have been analyzed below
Strengths
 Tesco is a successful and profitable company and this is the strength of the company as
they can easily sustain in the competitive market.
 As stated by Phadermrod et al.(2019, p.194), there are several awards of Tesco that they
have won for the effectiveness of their products as well as services.
 On the other hand, the organization effectively satisfies the needs and demands of their
customers. Like this they can easily impress the customers and enhance their sales as
well.
 The company uses advanced technologies in their business process and this can give
proper competitive advantages in their business.
Weaknesses
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Assessment 2: Essay
 The company has several competitors like Asda and this can provide negative effects on
their business process.
 The company faces price wars from their rivals and this can provide effects on their
pricing strategies.
 As per Maity and Ganguly, (2019, p.89), Tesco has focus in their UK market more other
than their international business so this is another weakness of the business.
 The customers also do not buy some products of the company and this is less deposable
for the business as well.
Opportunities
 The company has proper opportunities to bring new attractive products. Like this they
can effectively attract the customers. Thus, it can be helpful for them to gain effective
competitive advantages in their business process.
 In the countries like India the company can develop their relationship with the local
companies. Like this they can easily capture the market with the joint venture.
 There are opportunities in the private level market for Tesco.
 According to Edgeman, (2019, p.137), Tesco has the opportunity to expand their market
in the international market more.
Threats
 As sighted by Cui et al. (2019, p.127), the economic recession can provide negative
effects on the business of Tesco as the overall market can be decreased due to the
economic recession.
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Assessment 2: Essay
 In the international market the company can get high threat from various companies of
different nations. Therefore, Tesco can get negative issues on their business process and
face threat in terms of sustain in the market.
 Raising the price of the raw materials is another threat of the business. Due to high price
of the raw materials the production process of the company can get some challenges and
this is a negative factor of the business.
 Along with this the government policies as well as rules and regulations can provide
threat to Tesco as the management needs to develop the services as per the rule of the
government. As per Reuer, (2019, p.90), on the other hand, it can be seen that the labour
threat can also provide challenges to the business of Tesco as itt can increase the
employee turnover of the business.
After analyzing the SWOT analysis of Tesco it can be seen that the company has different threats
and weaknesses in their business process which they need to handle as soon as possible.
Otherwise the company can face difficulties to sustain in the competitive market. However,
using the opportunities of the company they can effectively handle the weaknesses and threats.
On the other hand, they can also develop their strengths more with the help of the opportunities.
This is how the company can easily meet their objectives and get proper profits in their business
process.
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Assessment 2: Essay
References
Cui, J., Allan, A. and Lin, D., 2019. SWOT analysis and development strategies for underground
pedestrian systems. Tunnelling and Underground Space Technology, 87, pp.127-133.
Edgeman, R., 2019. Performance Management and Enterprise Excellence through Sustainable
Business Models. In Sustainable Business Models (pp. 317-359). Palgrave Macmillan, Cham.
Maity, S. and Ganguly, D., 2019. Swot Analysis of India Post And India Post Payments Bank
And Their Role in Financial Inclusion. The Management Accountant Journal, 54(1), pp.68-72.
Phadermrod, B., Crowder, R.M. and Wills, G.B., 2019. Importance-performance analysis based
SWOT analysis. International Journal of Information Management, 44, pp.194-203.
Reuer, J., 2019. Small retailers surviving in a world influenced by global players and
digitalization.
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